Archive for March 2010

  • 22 Mar 2010 at 12:30 PM

Despite Trump’s Claims To The Contrary, Carl Icahn Has DEFINITIVE PROOF He And The Don Are Not Good Friends

By Bess Levin

The Times had a long profile of Carl Icahn over the weekend, wondering if the activist investor still has a fight in him, his likes and dislikes (being referred to as “raider,” for one), his early years in the biz (“When he turned 15, he played his own version of the ice futures market as a cabana boy at a beach club, ordering extra ice on hot mornings to sell to visitors who would run out later in the day”) and whether he has any plans to retire (“What else am I going to do?” Mr. Icahn asks. “Play shuffleboard?”). The article also discusses Icahn’s public feud with Donald Trump over three Atlantic City casinos bearing the Don’s name, which Carl was trying to gain control of. Here’s what Donald had to say about the matter:

“He told me he was doing it because he heard I wasn’t involved, but he knew I was involved, that I had a deal with bondholders,” Mr. Trump said. “I was very surprised and also very disappointed that Carl got involved,” Mr. Trump added. He said the two had been friends for years and that Mr. Icahn had sought his advice when he was divorcing his first wife. Mr. Trump said the two had not spoken since the call.

And here’s Ichan’s side the story:

“I should be the one that is surprised he is upset,” Mr. Icahn said. “I might possibly feel bad had I interfered at a time when he was running the business,” but that’s not the case, he added.

But the way more important thing that Uncle Carl wants to clarify? These two are in no way close friends, even using the loosest definition of the term. You wanna know how Carl knows this? Take a look at this picture:

Continue reading »

  • 22 Mar 2010 at 11:56 AM

Carl Ichan Is “The Elvis Presley Of The Activist World”

By Bess Levin


According to Scott Galloway, of “don’t burst into show tunes, urinate on the desk, or practice hair-removal in my class” fame.

  • 22 Mar 2010 at 10:30 AM

The Perks Of Being A Blankfein Child Working At Goldman Are Not Necessarily Reflected In One’s Paycheck?

By Bess Levin

It’s already been widely reported that Lloyd Blankfein’s son Jonathan will join the the other vampires at Goldman Sachs this summer, after he graduates from Harvard. LB’s older son Alexander (Harvard ’08) already works there, having made it through the a very rigorous interview process that lasted 57 rounds until everyone was sure this kid had what it takes. How much did Alex make last year? According to Goldman’s recent filing with the SEC, $155,000. Which…isn’t really that much? Or at least not enough to claim nepotism? Unless of course the other first years in “cross asset sales” took home much less, in which case, do it. GET ANGRY. Otherwise this doesn’t really seem like a perk, so much as pretty standard pay at GS. Having Lucas vP maintaining your Facebook page, that’s a perk. Viniar securing your dinner reservations: perk. Gary Cohn teaching you how to play airplane in the C-suite and personally rotating your golden scrot, this is a perk (kidding, he does this for everyone). $155,000? Eh? Continue reading »

  • 19 Mar 2010 at 5:00 PM

Write-Offs: 03.19.10

By Bess Levin

$$$ Chris Dodd Asks Department Of Justice To Probe Lehman Repo 105 And “Other” Accounting [ZH]

$$$ AIG CDOs Sold to Federal Reserve Placed on Review for Downgrade by Moody’s [Bloomberg]

$$$ Goldman Sachs Sued for Not Divulging Madoff Ban to Investor [Law.com]

$$$ Fallen trader has run out of options [Sydney Morning Herald]

  • 19 Mar 2010 at 4:25 PM

Howard Marks Is Depressed

By Bess Levin

About the government. Continue reading »

  • 19 Mar 2010 at 3:45 PM

An Example Of What’ll Get You Fired From Lehman Brothers

By Bess Levin

It’s not just chinos and pieces on the side. Another thing that made the Gorilla table flippingly mad was uppity pipsqueaks who dared to mention concerns about the firm committing fraud. Via the WSJ, here’s the letter that got whistle-blower Matthew Lee fired. He won’t make that mistake again!

MATTHEW LEE

May 18, 2008

PERSONAL AND CONFIDENTIAL

BY HAND

Mr. Martin Kelly, Controller

Mr. Gerard Reilly, Head of Capital Markets Product Control

Ms. Erin Callan, Chief Financial Officer

Mr. Christopher O’Meara, Chief Risk Officer

Lehman Brothers Holdings, Inc. and subsidiaries

745 7th Avenue

New York, N.Y. 10019

Gentlemen and Madam:

I have been employed by Lehman Brothers Holdings, Inc. and subsidiaries (the “Firm”) since May 1994, currently in the position of Senior Vice President in charge of the Firm’s consolidated and unconsolidated balance sheets of over one thousand legal entities worldwide. During my tenure with the Firm I have been a loyal and dedicated employee and always have acted in the Firm’s best interests.

I have become aware of certain conduct and practices, however, that I feel compelled to bring to your attention, as required by the Firm’s Code of Ethics, as Amended February 17, 2004 (the “Code”) and which requires me, as a Firm employee, to bring to the attention of management conduct and actions on the part of the Firm that I consider to possibly constitute unethical or unlawful conduct. I therefore bring the following to your attention, as required by the Code, “to help maintain a culture of honesty and accountability”. (Code, first paragraph).

Continue reading »

  • 19 Mar 2010 at 12:45 PM

New Hedge Fund Taking Page From Jesus’s Playabook

By Bess Levin

It’s JC Day on Dealbreaker, so here’s a hedge fund, inspired by Christ. Charging 2 and 20, $500,000 minimum. Get in at the ground floor:

C3:23 Capital debuted in January with $2 million. The long/short equity fund was founded by Trevor Chase Brown, an Atlanta investor who told HedgeFund.net that he’s been managing his own money for 10 years. Brown also claims a four-year audited track record. Brown said the fund is sector-agnostic, with one exception: The newly-minted hedgie said he tends to avoid technology names. The fund, which is “100% long 90% of the time,” according to Brown, is named for Colossians 3:23, which reads, “Work at everything you do with all your heart.”

Divine New Atlanta Hedge Fund Launches [FINalternatives via BI]

  • 19 Mar 2010 at 10:45 AM

Stephen Roach Has An Idea For How We Should Deal With Certain Troublesome Economists

By Bess Levin


The same way we deal with anyone who dispenses advice we don’t agree with, or breaks into our house in the middle of the night: “Take out a baseball bat on him.”

  • 19 Mar 2010 at 10:15 AM

What Sort Of Investment Advice Is The Pope Giving Out These Days?

By Bess Levin

As most of you probably know, Pope Benedict XVI is not just a spiritual adviser but a financial adviser as well. Last year in a letter to clients he noted that while there is something of a gray area when it comes to the tapping of underage ass, he and his team draw the line at mismanagement of capital, and that there is a seventh circle of hell waiting for those who commit sins in the financial arena. In his latest missive, Benedict had this to say.

The Pope called on businessmen to put profits earned from production and services back into the “real economy” rather than seeking a “quick return on the financial markets.”

In an address to Italian business leaders at the Vatican today, the pope called for “defeating the individualistic and materialistic mentality” that seeks to detract capital “from the real economy” in favor of investing in financial markets.

Continue reading »

Opening Bell: 03.19.10

By Dealbreaker

Alarm Was Raised On Lehman (FT)
Former Merrill Lynch officials said they contacted regulators about the way Lehman measured its liquidity position for competitive reasons. The Merrill officials said they were coming under pressure from their trading partners and investors, who feared that Merrill was less ­liquid than Lehman.

Norway CEOs, Analysts, Inmates Compete in ‘Dead Hard’ Ski Race (Bloomberg)
The Birkebeiner, Norway’s annual cross-country ski race, is attracting a record turnout, with chief executive officers and prison inmates lining up among tomorrow’s 16,150 participants. Pareto AS Chief Executive Officer Svein Stoele, former Aker Exploration ASA head Lars Thorrud, 48, and First Securities ASA’s 51-year-old Chief Strategist Peter Hermanrud, ranked second in Kapital magazine’s list of Norwegian analysts this year, are signed up for the 54-kilometer (34-mile) race. So are seven inmates from Hassel prison. The race has gained prestige, with contestants often including it on their resumes.

Bank of America Taps Goldman Director for China Post (WSJ)
Edmund Sim has been named a director for its China equity capital markets team.

Website’s instant posts of Wall Street research banned (Reuters)
A Manhattan federal judge on Thursday barred the financial news service Theflyonthewall.com from issuing immediate news about analyst research from several Wall Street banks, often before recommendations are shared with clients. Ruling in favor of Bank of America Corp’s Merrill Lynch unit, Barclays Plc and Morgan Stanley, U.S. District Judge Denise Cote said Theflyonthewall.com engaged in “systematic misappropriation,” essentially getting a “free ride” from its quick publication of upgrades and downgrades that can move stocks higher and lower. Cote issued a permanent injunction requiring the Summit, New Jersey-based company to wait until 10 a.m. to report research from the three banks that was issued before the market opens, and at least two hours for research issued thereafter.

Is That A Jawbone In Your Ear? (CNBC)
The “hottest” in Bluetooth earpieces. So you can look one part asshole 3 parts douchebag.

Fed officials warn against loss of bank oversight (Reuters)
A financial regulatory overhaul bill unveiled in the U.S. Senate this week would diminish the powers of most of the regional Fed districts and leave some with no banks to oversee. “It is a travesty,” Thomas Hoenig, president of the Kansas City Federal Reserve Bank, told a bankers’ group. “It is absolutely disenfranchising our relationship with a very important, hugely important, sector outside of Wall Street across the United States.”

How bad is it? Check out the photo Reuters used to illustrate this story. Continue reading »

  • 18 Mar 2010 at 6:30 PM

Write-Offs: 03.18.10

By Bess Levin

From the cameraman: 'Oozing confidence, power, a tan and a strong musk.'

$$$ Heidi Moore: The Big Short Gets the People Right and the Finance Right [TBM]

$$$ Blackstone prez to host ‘private’ Pelosi fundraiser (I just want you to appreciate the graphic). [NYP]

$$$ Hedge fund matchmakers cannot escape scrutiny [Reuters]

$$$ Wall Street, Obama Parting Ways (according to Charlie Gasparino) [FBN]

$$$ Cuomo Expands Pension Probe [WSJ]